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Limited Liability Releases Can Simplify Insurance Suits

Law360 (May 22, 2019, 2:49 PM EDT) -- In lawsuits where multiple insurers owe coverage to a single insured, but only some will agree to settle on the insured’s behalf, it can feel as though the parties’ only option is to continue to litigate. In those situations, using a limited liability release may provide a solution.

Typically, under a limited liability release, an insurer will agree to pay an amount to the plaintiff — often the limits of its policy — and the plaintiff will agree to a complete release of the settling insurer and to a limited release of the insured. The release of the insured is limited...

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